TSMC’s Second Quarter Results May Fuel Its $420 Billion Rally as AI Demand Soars

  • Margin growth may trigger valuation expansion: analysts
  • Foreign funds have been selling the stock in Taiwan for 5 days
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Taiwan Semiconductor Manufacturing Co.’s $420 billion equity rally this year will get a valuation test next week when it reports earnings, with analysts expecting the chipmaker to raise full-year sales forecasts.

The world’s biggest contract chipmaker will probably report a 29% increase in second-quarter net income on Thursday, according to the median estimate of analysts surveyed by Bloomberg. More importantly, analysts from JPMorgan Chase & Co. to Morgan Stanley expect it to also raise its full-year sales guidance, justifying another round of valuation expansion.